Why are cryptocurrency the future?

Transcription

1 WHITEPAPER

2 Why are cryptocurrency the future? The speech deserves a series of books, I will try to trivialize as much as possible but it is obviously much more complex than I will write below. Money has been a physical entity for a long time, something that could be touched or weighed. Many of the existing coins have given this name, the British pound or the Israeli shekel in their name. Since the year 2000 banks have become digital, in the last 15 years we have used less and less branches and ATMs and we have started using credit cards and various digital payment systems. The only thing that has not changed over the years is the centralization, whenever Mario had to pay something to Giacomo had to directly or indirectly use a bank, the credit institution had to certify that Mario was depleted of tot coins and Giacomo he had enriched himself with tot coins. Today, thanks to the blockchain (at the base of all cryptocurrencies) these transactions can take place freely without intermediaries, since it is a decentralized network and the network itself is witness to the movement of this currency. A fiat currency (the one we use today) is fundamentally based on trust, we all must agree that the currency we use has that particular value, as the word itself suggests, Fiat = which has value. We must therefore trust that central banks do not devalue the currency and that they keep it for us, but we know that they instead take that money and lend it to get revenues, keeping a very small reserve. The cryptocurrencies solve the problem of trust, it is no longer necessary. Andrea Geremicca, Mentor at John Cabot University

3 DISCLAIMER The purpose of this whitepaper is to present and describe the Masternode Share token (MS). The information below should not be considered exhaustive and does not imply any element of a contractual relationship. Its sole purpose is to provide relevant and reasonable information to potential buyers and prospective owners of Masternode Share MS. Nothing contained in this whitepaper should be considered as a kind of investment solicitation; all data, estimates and information contained in this whitepaper constitute proforma data collected at the time of writing this document. All data or information, in the future, may vary and however, they involve risks that can materially cause actual results different from the estimates expressed in the forwardlooking statements below. Masternode share (MS) does not provide commercial, legal or investment advice in any way. Please consult with your authorized professional before making any financial transaction, including any purchase and sale of Masternode share token MS. This Whitepaper does not constitute a disclaimer for the purchase of Masternode share (MS) and it is the Buyer's full responsibility to check whether it is illegal in his jurisdiction to make a sale or purchase transaction of the Masternode Share (MS). Masternode Share (MS) and all its collaborators will have no responsibility for damages of any kind and nature, that may derive from the use or in relation to this White Paper or any

4 content herein, even in case of express warning of the possibility of the occurrence of the damage. For no reason Masternode Share and its collaborators will be held responsible for any damage, loss, liability, costs or expenses of any kind arising from, direct, indirect or consequential damages, compensations, accidents, in relation to, or as a result of reliance to this WhitePaper in relation to the ICO MS, with specific reference, by way of example but not exhaustive, economic, commercial, income, profits, costs, indemnities, payments, data, rights of use or any other loss of intangible assets or rights. The user therefore expressly acknowledges to waive any claim against MS for any loss, direct or indirect, or to assert any form of contractual or extra-contractual liability, or to request damages of any kind or nature. For any disputes that may arise, the competent court will be regulated by the State in which MS has its registered office, or Switzerland. The processing of personal and sensitive data will be regulated by the EU Regulation 2016/679.

5 INDEX: PREAMBLE What is a proof of work How is this algorithm implemented in the Blockchain?..1.2 The Proof-of- Work: the basis of several crypto currencies Mining: High Costs Mining: Inconsistent calculations Mining: Attacks 51% POW alternative: proof of stake The masternodes: what they are and how they works What are the prerequisites for starting a masternode?..1.9 Cloud mining vs. Masternode vs. Mining: Masternode share token: the project. 2.0 Roadmap masternode share token 2.1 Marketing: ICO initial coin offering Starting Masternode Receiving dividends: who is eligible

6 Exchange Masternode pool Sales phases: Pre-sale, Pre-ico, ico. 3.0 Collection ethereum and sending MS tokens Starting masternode Dividend distribution Breakdown and start of the masternode: average annual ROI Masternode pool: What are Masternode pool: mode of participation and operation Masternode pool: fee Masternode pool: yield Difference between masternode share and masternode pool Conclusions

7 1.0 INTRODUCTION A cryptocurrency is an equal, decentralized currency digital, whose implementation is based on the principles of cryptography to validate the transactions and the generation of money itself. Implementations often use a proof-of-work scheme as a safeguard to digital counterfeiting. They use peer-to-peer (p2p) technologies on networks whose nodes are computers of users scattered around the globe. On these computers come performed special programs that perform purse functions. There is currently no any central authority that controls them. Transactions and release take place collectively on the network, therefore there is no "centralized" type of management. These Unique properties of their kind cannot be explained by payment systems traditional. Over thirty different specifications and protocols have been defined, mostly similar or derived from Bitcoin. Some states, including Japan, have recognized the Bitcoin legal tender, and therefore in these states it can be used legally instead of the local currency. Most cryptocurrencies are designed to gradually introduce new ones unit of currency, placing a ceiling on the amount of money that will be in circulation. This is done both to imitate the scarcity (and value) of precious metals, and to avoid hyperinflation. Compare with the ordinary currencies managed by financial institutions or holdings as cash, the cryptocurrencies are less susceptible to confiscation by the forces order. The transactions carried out with the cryptocurrencies offer a good level of privacy,

8 thanks to the pseudonym characteristic of the users. The level of privacy varies a according to the protocol used, and is total for those cryptocurrencies (such as Monero, Dash, Zcash) that use the "zero knowledge" validation system, thanks to which it does not come no information of the parties exchanged. 1.1 What is a POW (Proof of work) and how it works With the term Proof-of-Work means the consent algorithm at the base of the network Blockchain. In a Blockchain, this algorithm is used to confirm transactions and produce the new blocks in the chain. PoW encourages miners to compete with each other in the elaboration of the exchanges, receiving in return a reward. Within the Blockchain, users send digital goods to each other. A log decentralized collects every single transaction: however, in order to be considered valid, these must first be approved and organized in blocks. This responsibility falls on special nodes called miner; the whole process comes instead called mining. At the base of this system we find complex mathematical problems and the need for simply demonstrate the solution.

9 1.2 How this algorithm is implemented in the Blockchain Miners solve the problem, give life to a new block and confirm all of them transactions within it. The complexity of the problem depends on the number of users, on the computing power available and from network load. The hash of each block contains the hash of the block previous, increasing security and preventing any kind of violation computer technology. When a miner can solve the problem, the new block is created and the transactions are placed inside it. 1.3 POW: the basis of several cryptocurrencies. The most popular application of the PoW is Bitcoin. It was this disposable cryptocurrency the basis for this type of consent. The problem is called Hashcash, and the algorithm changes its difficulty dynamically depending on the computing power available on the network. The time for creating a block is about 10 minutes. Also others Bitcoin-based currencies, such as Litecoin, use a similar system. What are the disadvantages of the PoW consensus system? The main disadvantages of a PoW system are the high costs, the total uselessness of the calculations performed by the miners and the risk of network attacks of 51%.

10 1.4 Mining and critical aspects: High costs and waste of energy resources The mining process requires highly specialized machines, able to solve in short times extremely complex algorithms. These devices are not alone extremely expensive, but also consume huge amounts of electricity, further increasing prices. It is a dangerous threat to decentralization of the system, as only a small slice of the user can afford this kind of investment. 1.5 Mining: Uselessness of the calculations. Miners consume a lot of time and energy to generate new blocks, performing calculations as an end in themselves, not applicable to any other sector. The problems guarantee therefore the security of the network, but cannot be used in the economic field or scientific. 1.6 Mining: Attacks 51% With 51% attack, or majority attack, we mean the case in which a single user or a group of individuals can control most of the mining power of a network. The attackers get such an influence in the network that they can control the outcome of the events that take place inside it. For example, they could monopolize the generating new blocks, hindering other miners and preventing them from receiving them rewards.

11 Fortunately, a 51% attack is not profitable at all. It would need an incredible power of calculation to be able to control the entire Blockchain, and once the news reaches the rest of users, the network is considered compromised and readily abandoned. This would inevitably lead to a decrease in the value of the cryptocurrency, and consequently the funds held by the perpetrators of the attack. 1.7 The alternative to POW: the Proof Of Stake (PoS) The Proof of Stake is an alternative method, a way through which the nodes reach a consensus. It was proposed for the first time by a user of the Bitcointalk forums in 2012 because the PoW required too much electricity and energy. Many studies today compare the cost of electricity for the management and operation of a Proof of Work network like the Bitcoin one to the power of millions of houses in the United States. The Proof of Stake, on the other hand, uses much less energy and is therefore much more ecological and user friendly of Proof of Work. In the Proof of Stake consensus model, the number of digital currency tokens held by each user is an important issue within the system. The bigger the participation ("stake"), or the amount of tokens owned by a user, the greater they are the odds that you are not violating the system. Furthermore, the more an individual is exposed to one cryptocurrency, the more likely it is that they behave optimally.

12 The blocks of the Proof of Stake, unlike the blocks of the Proof of Work, do not come extracts, but coined. Participants who possess a significant participation in the Proof of Stake systems are selected on a pseudo-random basis to coin blocks and add them to the blockchain. The pseudo-random selection process goes into operation after the system has analyzed different factors to ensure that only individuals with a quota are selected greater, but also others with a lower stake. Proof of Stake is generally applied to pre-mined cryptocurrencies, so allow the user to access it through participation. This means that the offer of the cryptocurrencies Proof of Stake is fixed from the beginning and that there is not no prize for the creation of blocks, as is the case in the Proof of Work. The only incentive for miners in this system is the commissions of transaction associated with the specific coined block. The PoS provides some key concepts: Possibility to start masternode to generate money and guarantee the network; Usually no reward for the block; Coins grows with a certain rate of inflation; Miners receive transaction fees.

13 1.8 The masternodes: what they are and how it works Masternodes are nodes of the currency network itself, which perform specific functions, not only transaction control. In the case of Dash these allow perfect operation of InstantSend, PrivateSend, and the DASH treasury. Other crypts divided as Crown plan to use these Masters nodes to host decentralized and other applications functions. This philosophy differs from systems like Bitcoin, where a node works simply as a server, which re-directs transactions. Masternodes fulfill special functions in the crypto network, operating costs money and dedication, for their effort, the operators are incentivized with the gain of a quota on bonuses in Dash blocks. The service of hosting a Dash master node creates Dash, like MUE (MonetaryUnit) masternode creates MUE. The yield varies mainly in based on the calculation capacity of each masternode, on the number of nodes present in the network and on the total number of coins generated. This makes the Masternodes a way to get "passive income" in cryptocurrencies, without having to buy expensive equipment to undermine. Everyone can make a work Masternode. The goal is to have many of these "services" for a good one decentralization, so that no one controls an important part of Masternode. However, there is a condition that usually needs to be fulfilled. You must have a quantity minimum coins to participate in a Masternode.

14 Participate in this context means that you have to lock the coins for a certain time (thinks like a deposit with yield). Coins do not have to "be" in the Masternode, but they must be held in a certain way. If the owner moves or spends those coins, the Masternode it stops working. This "proof of ownership" system serves encourage operators to prevent certain individuals (speculators) from checking one big part of the network on their own. 1.9 What are the prerequisites for starting a masternode? To create a Masternode, the user must lock a certain amount of coins for an indefinitely time. (For more details see below). In the case of DASH, the creation of a master node requires 1,000 DASH in a local portfolio. Users can therefore setup a server or ask a service provider to do it for them. 1:10 Cloud mining vs. Masternode vs. Mining: Pros and Cons As reported in the table to here below, we analyzed and compared with one another, with data updated to the date of issuance of the white paper, the costs and revenues relating to two years: Home mining (ETH \ BTC ) Cloud mining, Masternode share

15 ETH MINER: 6x RX580 GPU RIG 6 gpu Model RX580 Gross revenue/day 9.30$ Best cost x unit 416.5$ Energy cost (Italy) 0.285$ kw/h Total cost cards 2499$ Total cost energy/day 5.4$ Total cost rig (motherboard+processor+power supply+hdd+cables+fan+structure rig) 3650$ Net revenue/day 4.16$ Total hashrate 170Mh/s Net revenue/year 1518$ Watt used for 6 cards 750watt %ROI/year 41% Total invested 3650$, with 3036$ of return for two years of activity = -614,00$ Loss of warranty due to mod bios, possibility of break cards, cards becoming old and not productive in 2 years, miss of revenue for days due to down of electricity, maintenance, continuous monitoring of temperature of cards and room, 750watt always used on your home counter. At the end of the two years you got back 82% of investment back, with a lot of useless hardware, losing 18% of your investment without count your time spent on project.

16 BTC MINER: Asic S9 Price of s9 + Power supply $ 1800 Gross revenue / day $ 7 (from Bitmain official site) Total hashrate 14Th / s Energy cost (Italy) $ kw / h Watt used 1200Watt Total cost energy / day $ Net revenue / day $ Loss / year -377 $ % ROI / year -20% Total invested $ 1800, with -377 $ of loss for two years of activity = -2554, 00 $ Same behavior for Home made Rig, hardware getting old after 2 years (or earlier), in this case with price of Bitcoin around $ 7500, you'll lose money every years even!! Cloud contract on ETH Data from any cloudmining Net revenue / year 3060 $ pool 100kh / s $ 1.80 % ROI / year 100% 170Mh / s (Same of home made RIG) 3060 $ / 1 year contract Total invested $ 6120, with $ 6120 for two years of activity = $ 0 You can not chop off and close your contract before 1 years, and you're ready to renew the contract every years, paying again your 3060 $, at the end you just changed your 3060 $ into eth. Earn = 0!!

17 MS Masternode Share Hypothesis of investment 3000 $ Net revenue / day $ 1.70 Maintenance cost / year $ 0 Net revenue / year $ % ROI / year 2 2, 68% Total invested $ 3000, with 1241 $ for two years of activity = 4241 $ Real Earn of $ 1241, your money remains always available for your MS token on exchange, and additionally you get a reward for 30 days. No old hardware to throw after two years, no maintenance. Your crypto back + best reward in crypto ecosystem.

18 2.0 MASTERNODE SHARE TOKEN: THE PROJECT Masternode Share is the largest common masternode operation in the world; is a project designed to allow anyone to finance and participate in the creation of joint masternodes and receive a monthly income proportional to the tokens in their possession, even without having any technical capacity and large sums of capital. All annuities generated by the masternodes, minus maintenance costs, (a dash node will generate dash) will then be converted into Ethereum and divided proportionally among the holders of MS representing their participation in the masternode share. The whole process will be simplified to the maximum that will be automated through smart contracts and managed, on behalf of MS token holders, by a team of experts in the field. The user will have access to his / her account and on a monthly basis will receive his / her share due in a regular and transparent manner. The volatility and variability of the profits of the masternodes, makes it difficult to predict how much cryptocurrency a masternode can generate, we have done our best to calculate various possible scenarios and have included this information of this Whitepaper using data to date updated.

19 2.1 Road map masternode share token: Each successful project must overcome and solve different problems as well as complete fundamental points: Marketing: Airdrop, announcements, website, fairs ICO (Initial Coin Offers) soft cap. Hard cap + KYC Starting masternode Receiving dividends: who is eligible Exchange Starting the Masternode pool

20 2.1.1 Marketing: airdrop, announcements, website, international events In order to advertise an ICO for the general public of the web, a fundamental tool is airdrop, therefore, "give" a small quantity of token to whoever follows the project, for example who follow the Twitter account, chat Telegram etc. etc. Bitcointalk, one of the global forums, will be used as the main platform most important concerning crypto currencies. It will also be essential to build a website captivating but intuitive where you can also download key documents such as whitepaper and onepager. In addition, the MS token team will be present at international trade fairs in the sector to promote the initiative ICO (initial coin offer) Soft-cap, Hard-cap + KYC It is a Smart Contract which is an extremely advanced tool of financing that follows the structure of Public Purchase Offers, although not sharing neither the purpose nor the surveillance system that the latter is connected. Our ICO having the Masternode share token will be launched; investors will send Ethereum and will receive MS token back as proof of transparency (following verification of KYC) at the specific end-to-end ETH \ USD exchange rate. If the minimum cap of the soft cap ($ 2M ) is exceeded, the project will continue in the subsequent phases, otherwise all the ethereum collected will be returned to investors. The maximum hard cap was set at $ 30M, tokens not sold at the end of ICO will be destroyed.

21 In any case soft cap and hard cap can be modified at any time of ICO, so this amounts are to be considered indicative only, but no more token will be created after ICO ends Starting Masternode The ETH collected, with the exception of the investment costs for the launch of the legal structure, will be used to open the masternodes and convert major Exchange (BITTREX, POLONIEX, BITSTAMP etc.etc.), To obtain the crypts currencies necessary to start the masternodes, in case you decide to start masternode DASH, PIVX and STRATIS, the ethereum will come just exchanged, for example, in these cryptic currencies. As soon as the necessary coins are available, the masternodes will be launched; the annuities generated (coins of the respective Masternode will be generated) will be reconverted into ethereum and sent monthly to holders of MS tokens (only to those who are eligible for annuities cap ) through smart contract Receiving dividends: who is eligible Not all MS holders will receive dividends; only those who have verified their wallet will be eligible for receipt of the annuity, please note that those who keep the tokens inside the wallet of the exchange or in an unverified wallet will not receive a dividend.

22 Furthermore, to eliminate micro transactions, only those who have in their verified wallet an amount equal to or above MS will be eligible to receive dividends. Verified wallet; > 3000 token in your wallet = suitable Verified wallet; <3000 token in own wallet = unsuitable Verified wallet; token in the exchange wallet = not suitable Unverified wallet; token in your wallet = not suitable Exchange The share token masternode will initially be listed in appropriate Exchange minors of Crypto currencies (hitbtc, idex, etherdelta, gate.io ecc.ecc.) And it will be possible to buy and sell of the token among users all over the world. It will be the dev team's job, depending on the trading volumes, to add the token in Greater Exchange. Recall that MS is a real investment project on masternode and we consider it as the main and fundamental owe the income (and the sending through dividends) generated by the masternodes; we consider irrelevant or even damaging possible pump and dump actions on the price of the token itself, since the quotation of the token appears to be completely disconnected from the income it will be able to generate.

23 2.1.6 Starting the Masternode pool At the end of the ICO, the pooled masternodes discussed in section 4.1, 4.2, 4.3, 4.4 and 4.5 of this whitepaper will be launched. 3.0 Sales Phases: Presale, Preico, Ico There will be 3 sales phases PRESALE, PRE-ICO, ICO, Each one characterized by a decrease in price token. PRESALE: designed for big investors, those taking part in the presale will have the opportunity to purchase tokens at an advantageous price, against a minimum purchase amount of at least 5 ETH. PRE-ICO: in the pre-ico phase anyone can purchase the token at the price of 0.09 $ with a minimum purchase amount of 1 ETH. ICO: in the ICO phase the sale price will be 0.1 $ and the minimum purchase 0.1 ETH. It is reaffirmed that, to determine the number of tokens purchased, the ETH / USD exchange rate of the end ICO will be applied. Presale from 10/07/2018 to 10/08/2018 minimum: 5 ETH 0.08$ Preico, from 11/08/2018 to 10/09/2018 minimum: 1 ETH 0.09 $ ICO, from 11/09/2018 to 10/10/2018: 0.1 ETH 0.10 $

24 the duration of each sale round will be evaluated by the staff and can be modified. In addition to those sold, more tokens will be divided in different wallet: Staff team, Airdrop\bounty, maintenance, marketing. It is also expected an initial found that it will be used to meet the initial costs for starting company and development, legal and fiscal advice, hardware components, cyber security and so on. All this founds are inversely proportional to the ICO amount received, so more we receive and proportionally less will be allocated to each fund, this to guarantee more revenue and more token for our investors. Remember, the upper category will be taken on, so for example if we receive $ 7.5M the category taken into consideration will be the $ 8M In this example of distribution plan, suppose we raise $ 9.5M, the category taken into consideration will be the $ 10M 81.13% will be sent to the ICO participants 6.00% will be used for initial found 12.0% will be deposited and locked in the developer wallet 0.32% will be utilized for airdrop, and bounty 0.054% will be deposited and locked for Maintenance wallet 0.50% will be deposited and blocked in the Marketing wallet

25 ICO Token sale Initial found Dev team Airdrop Mainteinance Marketing $ ,00 70,00% 9,57% 19,36% 0,400% 0,0700% 0,60% $ ,00 70,54% 9,50% 19,00% 0,390% 0,0680% 0,50% $ ,00 72,05% 9,00% 18,00% 0,380% 0,0660% 0,50% $ ,00 73,57% 8,50% 17,00% 0,370% 0,0640% 0,50% $ ,00 75,10% 8,00% 16,00% 0,336% 0,0620% 0,50% $ ,00 76,59% 7,50% 15,00% 0,350% 0,0600% 0,50% $ ,00 78,10% 7,00% 14,00% 0,340% 0,0580% 0,50% $ ,00 79,61% 6,50% 13,00% 0,330% 0,0560% 0,50% $ ,00 81,13% 6,00% 12,00% 0,320% 0,0540% 0,50% $ ,00 81,55% 5,80% 11,80% 0,310% 0,0520% 0,49% $ ,00 81,97% 5,60% 11,60% 0,300% 0,0500% 0,48% $ ,00 82,39% 5,40% 11,40% 0,290% 0,0480% 0,47% $ ,00 82,81% 5,20% 11,20% 0,280% 0,0460% 0,46% $ ,00 83,24% 5,00% 11,00% 0,270% 0,0440% 0,45% $ ,00 83,66% 4,80% 10,80% 0,260% 0,0420% 0,44% $ ,00 84,08% 4,60% 10,60% 0,250% 0,0400% 0,43% $ ,00 84,50% 4,40% 10,40% 0,240% 0,0390% 0,42% $ ,00 84,92% 4,20% 10,20% 0,230% 0,0380% 0,41% $ ,00 85,34% 4,00% 10,00% 0,220% 0,0370% 0,40% $ ,00 85,66% 3,90% 9,80% 0,210% 0,0360% 0,39% $ ,00 85,98% 3,80% 9,60% 0,205% 0,0350% 0,38% $ ,00 86,30% 3,70% 9,40% 0,200% 0,0345% 0,37% $ ,00 86,61% 3,60% 9,20% 0,195% 0,0340% 0,36% $ ,00 86,93% 3,50% 9,00% 0,190% 0,0335% 0,35% $ ,00 87,24% 3,40% 8,80% 0,185% 0,0330% 0,34% $ ,00 87,56% 3,30% 8,60% 0,180% 0,0325% 0,33% $ ,00 87,87% 3,20% 8,40% 0,175% 0,0320% 0,32% $ ,00 88,19% 3,10% 8,20% 0,170% 0,0315% 0,31% $ ,00 88,50% 3,00% 8,00% 0,165% 0,0310% 0,30%

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27 3.1 ETHEREUM COLLECTION AND SENDING MS TOKEN Once the ethereum is collected, at the end of the ICO, the corresponding amount of MS token will be sent back to the participants. The ethereum collected, when the soft cap is reached, will then be converted into the coins necessary to start the masternodes, for example in Dash, Stratis, PIVX etc.etc. that will be immediately online and capable of generating income. Obviously the first dividends will be sent, presumably from October MASTERNODE START When the soft cap is over, the collected ethereum will be converted into the necessary coins and the respective masternodes will be started immediately. All income from the respective masternodes will then be converted into ethereum (ETH) 3.3 DISTRIBUTION OF DIVIDENDS On the 30th of each month, the smart contract will take a snapshot of the blockchain ethereum to identify the addresses (and quantities) where the MS tokens are present and if verified (see point 2.1.7) will provide instant transmission proportionally to the amount of ms tokens present. If a user owns 1% of the total tokens he will receive 1% of the income from the masternodes in ethereum.

28 3.4 Repartition and startup masternode: average annual ROI With the table below, we provide an example of the types of masternode that will start every million dollars raised; we also provide data on the total coin CAP of each masternode, the current annual ROI and the investment in% of the masternode share of the market cap of each masternode. CAP Coin Masternode % ROI / year % Invested respect Marketcap DASH $ 2,452,848, % BLOCK $ % LUX $ 9,835, , % PivX $ , % ZCOIN $ , % CIVITAS $ 3,526, % SOCIAL SEND $ 2,316, % Reserved for ETH masternode

29 Below are the possible interest masternodes with indication of the ROI per year and the worth of each masternode. A fee will be reserved for the possible start of the ETH masternode Risk management $ ROI Worth MN DASH low $ ,90 $ 338, BLOCK low $ 47, $ 270, LUX low $ 13, $ PivX low $ $ 38, ZCOIN Medium $ $ CIVITAS High $ ,00 $ 31, SOCIAL SEND low ,00 According to current data using funds for $ (excluding any ETH masternodes to which no details are known) annually the total revenue generated will be $ , equivalent to an average ROI of 22.54%

30 4.1 Masternode pool: What they are The masternode pools have been designed to give the possibility to a group of people to obtain an income by participating, proportionally to their investment, to start a common masternode, without the obligation to make large individual investments, have the technical skills or buy the masternode share token. The masternode pools have a fixed duration which, when finished, will be dismantled and the coins sent back to the investors with the part due for the return. The pooled masternodes will be launched at a later time, when the ICO will be terminated and the masternode masternode shares fully operational. 4.2 Masternode pool: mode of participation and operation. Those who wish to participate must (as a result of registration required) select the interest pool in the appropriate section and fill in the whitelist inserting the minimum amount with which they intend to participate. The Masternode pool team will monitor the situation and when the total amounts exceed the amount needed to start the masternode, the fundraising will be officially opened for a set period of time. From this moment on, those who registered must send the amount indicated by him previously in the whitelist. For a correct management of the project it is required to send an amount equal to that specified at the time of whitelist, otherwise, if the user sends an amount different from the one indicated will be blocked by the service and will be denied participation in future pools.

31 Remember that it will be necessary to send the cryptocurrency of the same type that is required to start the masternode, for example if you participate in the start of a "Stratis" masternode the user must send Stratis. The pool masternodes will have a fixed duration (1 month, 3 months, 6 months), will be dismantled at the end and will be sent to the user: The total amount of coins invested previously sent. The yield generated divided proportionally to your investment Remember that, by referring to the previous example, the user will receive both the yield and the amount sent by the typology of the masternode pool. For example, if you participated in the start of a "Stratis" masternode, the user will receive the cryptocurrency sent and the return generated, both in Stratis. 4.3 Masternode pool: fee All the annuities generated by the masternode pools are subject to a pre-established fee based on the duration of the pool, a longer duration translates into a lower fee compared to pools with a shorter duration. For example, a duration of 1 month pool will have a fee of 10% on income generated, as opposed to a pool of three months which will have a fee of 9% and a 6 month will have a

32 fee of 8%. The details and methods will be determined and defined, case in case clearly, before the opening of each pool. The fees collected, only at the time of dismantling the pool, will be converted into ethereum and sent directly to the general wallet of the revenue masternode token, generating an extra income to all holders of the masternode share at the next effective date of sending the dividends. There are no bans on buying the MS share token in order to generate profit from both the masternode pool and the masternode share. 4.4 Masternode pool: yield All the masternodes, as already mentioned above, have variable returns and it is difficult to establish, now with certainty, the forecast of a future return. At the time of opening the whitelist to start a new masternode we will provide estimates according to the data available at the time, all users will be aware of the fact that they are estimates and not real data. At the opening of each pool will be indicated the precise conditions for that particular pool that may differ from those indicated, as an example, in this whitepaper.

33 4.5 Difference between masternode share and masternode pool The difference between the masternode share and the masternode pool is substantial, in the first case you buy a token and monthly you will receive on your wallet an income in ethereum generated by all the masternodes initiated (and in part by the generated fees of the masternode pool); furthermore, it will be possible to purchase and sell MS with other users via Exchange in which the token will be listed. The masternode pools have a fixed duration therefore the investor, in term, will receive on his wallet the coins sent to start the masternode as well as part of the income generated, divided proportionally among all the participants of the pool Once you have participated in the pool you will not be able to convert or claim the cryptocurrency sent, but you will have to wait until the end of the pool.

34 5.0 CONCLUSIONS: The Masternode share project is an ambitious yet innovative project; the world of crypto currencies is constantly evolving but at the moment there is no similar service that combines division of returns generated by masternode and masternode pool The ICO is initially intended for users all over the world; if found to be illegal in some country there may be restrictions or the sales in some states. Given the constant increase of the global capitalization cryptocurrencies, potentially can guarantee an average yield per annum prudential of 10% - 25%, over that a possible and substantial increase in the price of the MS token. We live in a rapidly changing world, and the arrival of blockchain and cryptocurrencies will change every aspect of our lives, just as the Internet has reshaped the world